Nakheel announces a DH 2.51 billion profit in the first quarter of 2018.
Nakheel; being inarguably one of the biggest and most renowned development entities in the region is the real-estate giant in the UAE. Having delivered some landmark projects iconic to UAE and specially Dubai, Nakheel has over the years marked its spot not only locally but globally.
However, this year, even after being able to generate a huge profit on its retail, hospitality and commercial developmental endeavors, Nakheel lagged behind in meeting up its own score from the last year. Nakheel has been able to generate a net profit of DH 2.51 billion in the first quarter of 2018 which is exactly at a drop of 3.83% from its 2017 figures the same time around last year being DH 2.61 billion.
Research gurus and trend observers have come up with various factors that are believed to have contributed to this not so massive but a noticeable decline in Nakheel’s profit charts this year. An overall plummet in the real-estate market of UAE is considered to be the major reason behind this fall. In addition to that, stricter expatriate property possession policies may also have been a contributor to this decline.
Nakheel, however, is not taking a dip with this temporary turbulence and has already signed a number of contracts across major industries like retail, hospitality and commercial developments. It is all set to add to its revenue through the completion of some projects due this year like The Night Market, Warsan Souk, The Palm Tower and Nakheel Mall which are all due to come on line by the year 2019. Furthermore, Nakheel has signed construction contracts worth more than DH 6 billion within the first 6 months of the year i.e. between January and June.
A DH 4.2 billion contract for Deira Mall, DH 600 million for Nad Al Sheba Mall, DH 385 million for the 800 room RIU resort at Deira Islands, and a DH 447 million contract for a bridge between Deira Islands and Mainland Dubai are some of the contracts Nakheel managed to bag during just the first six months of this year.
In addition to all these huge deals, Nakheel also signed a joint venture with Al Nasr Sports and Cultural Club in the first half of the year. This joint venture is aimed at building a retail centre worth around DH 300 million. This year, however, marked another big accomplishment for Nakheel where it signed a developmental contract even outside of the region in a planned partnership with Austria’s Vienna House Hotels for a new resort at Deira Islands declaring its very first project outside of Dubai worth DH 75 million in collaboration with the Sharjah Investment and Development Authority.